MSCI 572: Global Sourcing (with SAP)
(Phase 2 – Spring Term)
The globalization of operations and supply chains is today prominent in almost every industry sector. Organizations are facing up to the huge challenge of learning to compete in this wider context and are internationalizing in greater numbers, faster and in more ways than ever before. This module will develop an understanding of the challenges and risks associated with sourcing and offshoring decisions in the current global scenario. It will provide a context-based view of alternative sourcing and offshoring strategies and their appropriateness in relation to different contextual factors. This will include both manufacturing and service contexts with a focus on the role that IT, such as enterprise software, can play within these in coordinating global activities (e.g., web-based offshore services).
An understanding of the basic trade-off between profitability and sustainability objectives when making sourcing decisions will be developed. An overview of the managerial tools that can be used to deal with supply network sustainability issues (e.g., sourcing codes of conduct) will also be provided.
By the end of the module you should be able to:
- Understand the opportunities and risks that organizations operating in a global context are facing, with a specific focus on the upstream supply chain
- Critically assess alternative sourcing and offshoring decisions and the advantages deriving from the support of IT in different contexts
- Appreciate the ethical implications of sourcing and offshoring decisions from a social and an environmental perspective
- Analyse complex case studies.
Outline Lecture Plan
The following main subjects will be covered:
- sourcing models and supplier configuration options;
- role of IT in supporting sourcing, e-procurement;
- outsourcing process, risk management in business process outsourcing, outsourcing services;
- sourcing decisions in a global context, approaches to managing global sourcing risk, governance and management issues in global sourcing;
- offshore outsourcing of IT work;
- sourcing ethics, ethical challenges in a global context.
In addition, to appreciate the role which software now plays within the discipline of Logistics and Supply Chain Management, students will be introduced to SAP's Enterprise Resource Planning (ERP) software solution through lectures from an external ERP consultancy and a carefully designed set of personal learning on-line learning exercises. These will provide an introduction to the navigation and functionality of the most widely used ERP software, including in its Materials Management (MM) module for obtaining materials from a firm's suppliers.
The module will combine theory and practical application through a mix of lectures, in-class case-study discussion and workshops.
- Individual exam (a part of which will be case-based) – 70%.
- Group CWA – 30%;
Reading and Lecture Notes
No one text covers the course syllabus. Lecture notes will be provided for the course and, as appropriate, reading from the following texts and papers will provide additional coverage. Further specific texts on global purchasing offshoring and SAP will be selected by the course team.
Fraedrich, J., Ferrel, O.C., and Ferrel, L., 2011, Ethical Decision Making for Business, Cengage Learning
Lysons, K B. Farrington, B., 2006, Purchasing and Supply Chain Management, Pearson Education
Monczka, R.M., Handfield, R.B., Giunipero, L.C., and Patterson, J.L., 2011, Purchasing and Supply Chain Management, Cengage LearningTaylor, D., 2005, Global Cases in Logistics and Supply Chain Management, Thomson Learning
Oshri, I., Kotlarsky, J., and Willcocks, L.P., 2009, The Handbook of Global Outsourcing and Offshoring, Palgrave Macmillan
Peng, M., and Meyer, K., 2011, International Business, Cengage Learning
Van Weele, A., 2010, Purchasing and Supply Chain Management, Cengage Learning
Waters, D., 2009, Supply Chain Management, An introduction to Logistics, Palgrave Macmillan
Agrawal, V., Farrel, D., and Remes, J.K. (2003), Offshoring and beyond, The McKinsey Quarterly, 4, 25-35.
Amaeshi, K.M., Osuji, O.K., and Nnodim, P. (2008), Corporate social responsibility in supply chains of global brands: A boundaryless responsibility? Clarifications, Exceptions and Implications, Journal of Business Ethics, 81, 223-234.
Camuffo, A., Furlan, A., Romano, P., and Vinelli, A. (2007), Routes towards supplier and production network internationalization, International Journal of Operations & Production Management, 27, 4, pp. 371-387.
Caniato, F., Cagliano, R., Kalchschmidt, M., Golini, R., and Spina, G. (2009), Evolutionary patterns in e-business strategy, International Journal of Operations & Production Management, 29, 9, pp. 921-945.
Holweg, M., Reichhart, A., and Hong, E. (2011), On risk and cost in global sourcing, International Journal of Production Economics, 131, pp. 333-341.
Nassimbeni, G. (2006), International sourcing: Empirical evidence from a sample of Italian firms, International Journal of Production Economics, 103, pp. 694-706.
Rottman, J., and Lacity, M. (2006), Proven practices for effectively offshoring IT work, Sloan Management Review, 47, 3, 56-63.
Tate, W.L., Ellram, L., Bals, L., and Hartmann, E. (2009), Offshore outsourcing of services: An evolutionary perspective, International Journal of Production Economics, 120, 512-524.